Bankrupt Boscov's receives buyout bid

September 18, 2008 5:33:14 PM PDT

WILMINGTON, Del. (AP) - September 18, 2008 --

The Boscov's department store chain is seeking approval of a Delaware bankruptcy court for a possible buyout. Philadelphia-based Versa Capital Management has emerged as the lead bidder for Reading, Pennsylvania-based Boscov's, which filed for Chapter 11 protection in August and announced that it would close 10 of its 49 stores.

According to papers filed with the court Wednesday, Versa has offered to pay $11 million in cash and assume Boscov's debt.

Attorneys for Boscov's are asking for a hearing next week to approve the proposed bid procedures and schedule an October auction or sale date.

The court filings indicate that Versa wants to operate the department store chain as a going concern, and that Boscov's senior managers will remain involved with the business.

But attorneys for Boscov's say any sale must be closed before the upcoming holiday season, the most important period of the year for the retailer. They say that failing to close by the end of October could hurt Boscov's ability to avoid liquidation.